Tecum Capital Launches Fourth SBIC Fund With Over $325 Mn - InforCapital

Tecum Capital Management, based in Pittsburgh, Pennsylvania, has received approval from the U.S. Small Business Administration to operate its fourth Small Business Investment Company (SBIC), Tecum Capital Partners IV, L.P. The firm recently completed a fourth closing, bringing total commitments to over $325 million and reinforcing its strategy of providing mezzanine loans and minority equity investments to lower middle‑market companies.

This latest SBIC license and fund closing marks a milestone in Tecum Capital’s long-term growth plans. Managing Partner Stephen J. Gurgovits, Jr. stated that the fund continues the firm’s core strategy: providing strategic debt and equity capital to businesses primarily in the Rust Belt, Midwest, Southeast, and Mid‑Atlantic regions. Tecum works closely with independent sponsors, family offices, private equity firms, and management teams to fund recapitalizations, buyouts, generational transitions and acquisition-led growth.

Tecum Capital targets investments typically ranging between $5 million and $20 million per transaction within businesses generating at least $3 million in EBITDA. This consistent investment approach has helped the firm scale across multiple SBIC funds since its spin‑out in 2013. Over the last twelve years, its portfolio companies have collectively grown their workforce by 42 percent, from about 11,258 to over 16,000 employees.

In comparison, other SBIC managers have also seen momentum. Chevy Chase‑based Farragut Capital recently closed its third SBIC fund at $263 million, targeting profitable U.S. lower middle‑market businesses. Similarly, Bethesda’s IMB Partners exceeded its fundraising goal for its debut SBIC vehicle, closing at $125.5 million, and has focused on utilities and government contracting sectors. Bluehenge Capital’s SBIC II fund closed at $234 million, investing in middle‑market firms across industrial and manufacturing services, tailored to bank-sponsored community investments.

The broader SBIC program continues to attract attention. With over 300 licensed funds managing approximately $30 billion in capital, SBIC fund managers benefit from SBA-guaranteed debentures—typically offering near‑5 percent borrowing rates and strong returns. Recent SBA performance reports show SBIC vintages since 2013 delivering IRRs, TVPIs, and DPIs above median private equity benchmarks, reflecting the program’s effectiveness as a financing vehicle for small businesses.